Condominium living can be a fantastic balance between homeownership and low-maintenance living. But with shared walls, common areas, and joint ownership comes a unique set of insurance needs. Whether you’re a condo unit owner or part of a condo board/association, understanding the ins and outs of condo insurance is essential to protect your property—and your peace of mind.
For Condo Unit Owners: What You Need to Know
When you purchase a condo unit, you’re not just buying the four walls you live in. You’re also buying into a shared ownership model that includes hallways, elevators, lobbies, and sometimes amenities like pools or gyms. Here’s what you need to look for in your insurance:
1. Understand the Condo Corporation’s Master Policy
Before purchasing your own insurance, review what the condo corporation already covers. There are generally two types of master policies:
- All-Inclusive (or All-In): Covers the structure of the building, including fixtures in your unit like cabinets, flooring, and sometimes appliances.
- Bare Walls-In: Covers only the structure and common areas, leaving anything inside your unit (finishes, fixtures, upgrades) up to you.
Tip: Always get a copy of the condo declaration or bylaws—it outlines where the corporation’s responsibility ends and yours begins.
2. Protect Your Personal Property
Your personal condo insurance (often called a “condo unit owner policy”) should cover your:
- Furniture, electronics, clothing, etc.
- Upgrades or improvements you’ve made to the unit (e.g., custom countertops or flooring)
- Storage lockers (if included in your unit)
3. Don’t Forget Liability Insurance
If someone slips in your unit or you accidentally cause damage to another unit (e.g., a water leak from your washing machine), your personal liability coverage can protect you from major costs.
4. Loss Assessment Coverage
If the condo corporation has to make a claim and the cost exceeds their policy limits (or involves the deductible), they may pass some of that cost on to unit owners. Loss assessment coverage helps protect you from your share of those expenses.
5. Additional Living Expenses
If a fire or major water damage makes your unit uninhabitable, your policy can cover temporary living expenses like hotel stays or meals while your unit is being repaired.
For Condo Associations & Boards: Key Insurance Responsibilities
As a condo board or association, you’re responsible for insuring the building’s structure and shared spaces. But there’s more to it than just checking the box with your insurer.
1. Master Policy Coverage
Ensure your policy covers:
- The building(s) and common areas (hallways, roofs, elevators, lobbies, etc.)
- Mechanical systems and utilities
- Amenities like pools, gyms, and clubhouses
- Landscaping, fences, signage, and underground parking
2. Director & Officer (D&O) Liability
Board members can be held personally liable for decisions made in their role. D&O liability insurance helps protect board members from legal costs or damages resulting from lawsuits brought against them in relation to their condo duties.
3. Adequate Limits & Deductibles
Review your policy limits annually to ensure they reflect the current cost to rebuild—not just market value. You’ll also want a clear understanding of the deductible and how it will be allocated if a claim impacts multiple units.
4. Transparent Communication with Unit Owners
Help owners understand what the master policy covers vs. what they need to insure individually. Educating residents can prevent confusion—and conflict—when a claim arises.
5. Risk Management & Prevention
Insurance is only one part of the puzzle. Implement proactive measures to reduce risk:
- Regular maintenance of plumbing, roofing, and HVAC systems
- Clear snow removal and slip prevention protocols
- Routine fire safety inspections
- Keeping thorough meeting minutes and maintenance records
Final Thoughts
Condo insurance isn’t just a formality—it’s a shared responsibility. When both the condo board and unit owners are informed and adequately covered, the entire community benefits from smoother claims handling, fewer disputes, and stronger financial protection.
If you’re unsure about your current coverage—whether as a condo owner or board member—it’s a great time to review your policy with a trusted insurance advisor. Condo living should be simple and secure. The right insurance makes sure it stays that way.
